Oracle’s Larry Ellison talks the future of AI at Oracle’s 2024 Analyst Meeting

Oracle Corporation (NYSE: ORCL) is used to seeing its gyrations of pops and drops after earnings, but this last earnings report has enough bullish momentum behind it that even the analysts without “Buy” and “Outperform” ratings are raising the targets and eyebrows after the report. And some firms are even raising their price target for the second time in a week.

The enterprise software leader reported a sharp 11% jump in revenues, handily beating expectations, and it has targeted even stronger growth ahead for 2026 with its total cloud growth rate target of 40% next year (versus 24% this year). And Oracle is also forecasting its cloud infrastructure growth to be above 70% in 2026 versus about 50% this year.

Oracle shares were last seen trading up 13.3% at $199.85 in mid-morning trading on Thursday with nearly 30 million shares trading hands after 90 minutes of trading. Its after-hours reaction on Wednesday evening was up just 7.6% to $189.75 with more than 5.2 million shares trading hands.

Tactical Bulls always reminds is readers that no single analyst report should ever be the sole basis to buy or sell a stock. That said, this would still hold true after an earnings pop is followed by more than a dozen analyst target price hikes. This is an instance where analysts are reacting to the news after a huge stock pop rather than getting in front of the news.

SO WHO’S BUMPING UP TARGETS?

Deutsche Bank reiterated its Buy rating and raised its price target to $240 from $200.

Evercore ISI reiterated its Outperform rating and raised its price target to $215 from $180. It was impressed after management significantly increased its revenue target to show 16% anticipated growth in 2026 and potentially 20% growth from the higher base for 2027.

Jefferies reiterated its Buy rating and raised its price target to $220 from $200. It views the targets as reinforcing the potential of its AI buildout, with cloud revenue growth acceleration ahead while RPO momentum and revenue conversion potential can support further gains in the stock. Jefferies had already raised its target price from $190 just days before Oracle’s strong earnings report.

JMP Securities reiterated its Outperform rating and raised its target to $240 from $205.

KeyBanc Capital Markets reiterated its Overweight rating and raised its target price to $225 from $200. The firm even highlighted what were called “stunning growth targets” for next year after failing to live up to growth targets last year.

UBS reiterated its Buy rating and raised its price target to $225 from $200. In the end, UBS sees 2025 guidance and beyond chipping away at perceived risks that 2026 margins will shrink.

WestPark Capital reiterated its Buy rating and raised its price target to $246 from $195.

WHO ARE THE HOLD-OUTS?

BofA reiterated its Neutral rating and raised its price objective to $220 from $156. It is more a question of capex and profitability on all of the growth expected.

Citigroup maintained its Neutral rating, and while it raised Oracle’s price target to $196 From $186 its prior target was hiked from $160 just days before the report.

DA Davidson maintained its Neutral rating and raised its target to $170 from $140.

JPMorgan reiterated its Neutral rating but still raised its price target to $185 from $135.

Morgan Stanley reiterated its Equal-Weight rating and $175 price target, although the firm had just hiked its target from $160 days before this earnings report.

Piper Sandler reiterated its Neutral rating but still raised its price target to $190 from $130.

Stifel reiterated its Hold rating and raised its price target to $180 from $150.

DISCLAIMER

All analyst ratings and price targets mentioned above were issued by each firm named above. Tactical Bulls does not issue any formal ratings and does not maintain any price targets of its own on these stocks. Also please remember that no analyst report, even those with the strongest conviction, ever comes with any guarantees of profits and they never contain money-back guarantees in case you lose money.